27.Notes to the Statement of Cash Flows

27.1Cash flows from operating activities

The net cash of €1,383 million (previous year: €2,376 million) provided by operating activities comprises the cash surplus from operating activities and reflects the changes in working capital and other noncash transactions.

The €993 million (–41.8%) year-over-year decrease in net cash provided by operating activities was chiefly the result of lower EBIT by €1,728 million. This decrease was partially offset by lower income tax payments (€278 million) compared to the previous year and inflows from working capital amounting to €77 million (previous year: outflows of €231 million).

27.2Cash flows from investing activities

Net cash outflow for investing activities in fiscal 2019 amounted to €838 million (previous year: €346 million).

These mainly included cash outflows for additions to property, plant, equipment and intangible assets of €910 million (previous year: €707 million). The sale of the European system house business to H.I.G. Capital, Miami (United States), had an opposite effect which generated proceeds from divestitures of €51 million.

27.3Cash flows from financing activities

In fiscal 2019, there was a net cash outflow of €668 million (previous year: €2,402 million) for financing activities. Net loan repayments amounted to €147 million (previous year: €582 million).

In April 2019, dividends totaling €438 million were paid to Covestro AG stockholders.

The interest paid totaling €86 million (previous year: €74 million) reflected in cash flows from financing activities relates mainly to forward exchange contracts used to hedge foreign currency risks of €39 million (previous year: €43 million), lease liabilities of €33 million (previous year: €14 million), and bonds of €14 million (previous year: €14 million).

The cash flows from financing activities in the reporting year also include payments for leases recognized on the balance sheet for the first time upon initial application of IFRS 16, see note 2.1 “Financial reporting standards applied for the first time in the reporting period.”